Workday buys e-sourcing solutions startup Scout RFP for $540M
Founded in 2014, Scout RFP offers a sourcing and supplier engagement platform for procurement teams. The company’s platform is aimed at streamlining the procurement process through a unified pipeline of projects and facilitates collaboration between stakeholders and suppliers.
Scout RFP claims that it makes enterprise commerce faster, less risky and more transparent tools needed to transform sourcing processing. The company describes its service as “strategic sourcing.” Scout RFP clients include Intuit Inc., EasyJet Airline Co. Ltd., Zappos.com, Biogen Inc. and Workday as well.
For Workday, the acquisition will complement its existing Workday Procurement and Workday Inventory offerings. Scout RFP will provide existing and future Workday customers with a “comprehensive source-to-pay solution with a best-in-class strategic sourcing offering to transform the procurement organization and deliver better business outcomes, including reduction in spend, greater policy compliance and maximized engagement across key stakeholders,” Workday Vice President Petros Dermetzis said in a blog post.
Coming into the acquisition, Scout RFP had raised $60.3 million in venture capital funding, including a round of $15.5 million in June 2017. Investors include Salesforce Ventures, Workday Ventures, Menlo Ventures, Scale Venture Partners, NewView Capital, New Enterprise Associates and Drummond Road Capital.
Workday shares barely moved on the news, down less than a 10th of a point in regular trading, but the deal was another notch in the belt for a company that continues to impress with strong financials.
As of its last quarter, Workday reported earnings before certain costs such as stock compensation of 44 cents per share on revenue of $887.8 million, up 32% from a year prior, beating analyst predictions. The company’s subscription revenue grew 34% year over year, to $757.2 million.
Scout RFP is Workday’s 14th acquisition, the company having been highly active in snapping up smaller companies in its 14-year history. Recent acquisitions include Trusted Key Inc., Stories and Adaptive Insights Inc.
The deal is expected to close in by the end of Workday’s fourth quarter, which ends Jan. 31.
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